Background of the Study: Every construction company all over the world expects not only to break even in every project undertaken, but to also make a reasonable level of profit that will satisfy the owners of the company. This is only possible if the activities involved in undertaking any particular project are optimized, viz-á-viz the factors of time, cost and quality are successfully brought into optimal play, which defines the success of the project. But until construction projects are properly managed, success cannot be attained to a desired level to the satisfaction of stakeholders.
Thus, undertaking construction projects requires knowledge of modern management as well as understanding of the design and the construction process. Construction projects have a specific set of objectives and constraints earlier mentioned such as meeting a set time frame for completion, as well as operating within a budget ceiling in a possible effort to reduce cost. Change however alters many things and is very much inherent in construction work, thereby creating an atmosphere of uncertainty, and so majority of construction projects fail to meet deadlines, cost and quality targets. This is not too surprising considering that there are not known perfect engineers, anymore than there are perfect designs or that the forces of nature behave in a perfectly predictable way. But nature does not abhor change, and change cannot be eliminated; nevertheless, by applying the principles of risk management, engineers and construction professionals are able to improve the effective management of this change. In construction projects, each of the three primary targets of Cost, Time and Performance are likely to be subject to risk and uncertainty. Many professionals and decision makers, in the process of trying to make change in the project with minimum cost, get the project into trouble. Invariably, the non-capacity to stomach risk management or an insufficient risk analysis, can jeopardize construction projects.
Risk management assists Project Managers in setting priorities, allocating resources and implementing actions and processes that reduce the risk of the project not achieving its objectives. Risk management facilitates better business and project outcomes by providing insight, knowledge and confidence for better decision-making. In particular, it supports better decisions about planning and design processes to prevent or avoid risks and to capture and exploit opportunities. It provides better contingency planning for dealing with risks and their impacts, it encourages better allocation of resources to risks and alignment of project budgets to risks, and it facilitates decisions about the best allocation of risk amongst the parties involved in a project activity. Together, these lead to increased certainty and a reduction in overall risk exposure. The consequences of ignoring risk management include Increased costs on projects; Loss or reduction of profit; Damage to the brand/reputation; and In the worst scenario, disposal of the business or insolvency. Therefore, efficient risk analysis is vital to the successful undertaking and completion of any construction project
TABLE OF CONTENT
Title Page - - - - - - - - - - 1
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study - - - - - - - 4
1.2 Statement of Research Problem - - - - - - 5
1.3 Objectives of the Study - - - - - - - 5
1.4 Research Questions - - - - - - - - 7
1.5 Research Hypotheses - - - - - - - - 7
1.6 Significance of the Study - - - - - - - 8
1.7 Scope of Study - - - - - - - - 8
1.8 Operational Definition of Terms - - - - - - 9
CHAPTER TWOLITERATURE REVIEW
2.1 Conceptual Framework 10
2.1.1 Project Management 10
2.1.2 Project Manager and His Role 12
2.1.3 Concept of Project Risk 15
2.1.4 Concept of Risk Management 17
2.1.5 Risk management in construction 19
2.1.6 Risk and Conflict Management 21
2.1.7 Components of Risks in Construction Projects 23
2.2 Empirical review 252.2.1 Existing Gap for the Study27
2.3 Theoretical Framework 27
CHAPTER THREE RESEARCH METHODOLOGY Research Design 28
Population, Sample and Sampling Techniques The Research Instrument 29
Validity and Reliability of the research instrument 30 Research Constructs and Model Specification 32 Hypotheses Testing and Decision Rule 33
3.5 Justification of Method 35
3.5.1 Summary statistics and Basic Regression Analysis 35
REFERENCES 40
APPENDICES 43
